President Biden has proposed some new tax changes. How does this proposal affect you? We are breaking it down into 2 videos. In this video, we cover
- Proposed changes to the capital gains rate of incomes above $1 million
- Proposed corporate and individual tax rates going up
Capital gains rate, corporate tax rate, and individual taxes
This is the second video on proposed changes coming from the democrats and Joe Biden regarding the tax structure across the entire United States. The first video and post is here where we discussed the proposed changes to the Step Up Basis and Gift/Estate Tax.
In this post, we are going to be looking at three main areas. There are some proposed changes to the capital gains rate, on incomes above a million, corporate tax rates going up, and potential for individual tax rates to go up. All of these target higher earners, but let’s talk about it.
A lot is on the table right now, as mentioned in part 1 we talked about estate and gift tax. There are many changes coming, top bracket tax payers are going to be paying a higher rate, we know that much for sure. Many of the tax tables that are currently at certain breaks, are bound to change. The capital gains tax rate historically has been low, but we will probably see that go up for every wage earner, but especially for those over that million dollar mark. With corporate taxes, it’s unknown if it’ll be global corporate tax or potentially just domestic.
There’s a lot to think about and we know this will affect our clients. We want to make sure we let our friends and clients know that this is coming and we are paying attention to it. A lot goes into good financial planning, taxes being a huge part of what we do. If you have any questions about these potential changes that could be coming please reach out to our team.